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               Financial Assistance Programs by Provider




                                                    EW         EXICO
                                             ECONOMIC DEVELOPMENT DEPARTMENT


8/4/08
    New Mexico Finance Authority (NMFA)                                   Smart Money Loan Participation Program                             Red River Ventures                                                  Verge
    New Market Tax Credits                                                SMART Money is a program of SWEDFA. It provides bank               Red RiverVentures has $86 million of capital under management       Verge only invests in New Mexico companies and prefers
    New Market Tax Credits are designed to help low income                participation loans, direct loans and loan guarantees to New       and has invested in 18 different companies since 2000. Red River    to invest in the early stages: the seed or first round. Verge
    communities develop business that provide economic                    Mexico businesses. The SMART Money loan participation is           currently invests in a broad spectrum of industries, including      will make later-stage investments only in follow-on rounds
    development and jobs, including tribal areas with high levels of      designed to lower the cost for the borrower and share the risk     business and consumer services, healthcare, manufacturing           of existing portfolio companies as their business models
    unemployment and poverty. The credit is taken over a 7 year           with the bank creating a benefit to both the bank and borrower.     and technology. The firm provides funding for business start-        are validated and the risk factors are reduced. Their focus
    period, 5% in each of the first 3 years and 6% in each of the final     The borrower receives a fixed interest rate typically 300-400       ups, expansions of existing businesses, recapitalizations and       is primarily on technology business including life sciences,
    4 years for a total of 39% of the original investment amount.         basis points below the bank’s rate on the NMFA’s portion of        management led acquisitions.                                        manufacturing technologies, optics, semiconductors, software,
                                                                          the loan because the NMFA’s “Base Rate” is based on treasury       For more information: www.redriverventures.com                      telecommunications and energy.
    NMFA has received an allocation of $110 million and eligible          instruments of like maturity and adjusted upward for risk. The     Contact: Plano, 972.265.7946 or jim@redriverventures.com            For more information: www.vergefund.com
    activities may include:                                               NMFA does not charge fees to either the borrower or bank,                                                                              Contact: Albuquerque. 505.247.1038 or
          •   Loans or investments located in low-income census tracts;   and allows the bank to keep a portion of its interest rate to      Sun Mountain Capital                                                tstephenson@vergefund.com
          •   Development of commercial, industrial and retail            service loans, capacity building and technical assistance to       Sun Mountain’s regional direct investment programs do not
              real estate projects (including community facilities)       business owners and non-profit organizations throughout the         focus on specific industry sectors or in a particular stage in       Vestor Partners, LP
              in low income census tracts;                                state and the entire Navajo Nation. Loans are provided to          the investment cycle. Sun’s portfolio companies reflect the          Vestor is a private equity capital firm that invests with management
          •   Development of for-sale housing in low-income               new and existing businesses for equipment, inventory, building     investment opportunities indigenous to a particular region of       in established businesses located principally in the Western United
              census tracts.                                              renovations and operating capital. Loans are provided to non-      the country and are diversified by both stage and sector.            States. The company specializes in growing successful businesses
                                                                          profits for such needs as bridge financing against awarded private   For more information: www.sunmountaincapital.com                    with revenues of $10 million to $50 million.
    Public Project Revolving Fund (PPRF)                                  and public contracts, capital improvements and equipment.          Contact: Santa Fe, 505.594.5474 or                                  For more information: www.vestor.com
    The NMFA’s flagship program is a unique revolving loan fund            For more information: www.loanfund.org                             brian.birk@sunmountaincapital.com                                   Contact: Santa Fe, 505.988.9100 or dchase@vestor.com
    known as the Public Project Revolving Fund (PPRF). The PPRF           Contact: Albuquerque: 505.243.3196 or 1.866.873.6746
    funds infrastructure and capital equipment projects with low-                                                                            Tullis Dickerson (TD)                                               Village Ventures
    cost and low-interest rate loans. The key characteristics of          MICRO-LENDERS                                                      TD focuses on several industry segments: biotechnology and          Village Ventures is a seed and early stage venture capital firm
    the PPRF is that all participating borrowers, regardless of their     ACCION New Mexico                                                  life sciences, pharmaceuticals, health care services, and medical   focusing on three primary sectors: consumer media and retail,
    creditworthiness, receive ‘AAA’ insured interest rates; among         ACCION offers loans and support to self-employed individuals       devices. TD has established, funded and assisted in the growth      health care and financial services. The company has built a platform,
    the lowest interest rates available in the market.                    who have limited or no access to traditional business credit.      of dozens of public and private companies with revenues             which it offers to other seed and early stage firms, to provide for
                                                                          Loan amounts range from $200 to $150,000.                          ranging from zero into the billions of dollars.                     collaboration, co-investment and administrative cost sharing.
    Local Government Planning Fund (LGPF)                                 For more information: www.accionnewmexico.org                      For more information: www.tullisdickerson.com                       For more information: www.villageventures.com
    The LGPRF provides up-front capital that can be used for water        Contact: Albuquerque: 505.243.8844 or 1.800.508.7624               Contact: Greenwich, 203.629.8700 or                                 Contact: Santa Fe. 505.594.5474 or
    and wastewater projects, long-term master plans, conservation                                                                            tdickerson@tullisdickerson.com                                      fsommer@villageventures.com
    plans and economic development plans. The planning money              Enchantment Land Certified Development
    comes in the form of a loan which may be forgiven when the            Company (ELCDC)                                                    Valley Ventures                                                     vSpring
    final project is financed through NMFA.                                 ELCDC is a non-profit organization licensed by the Small            Valley Ventures, with offices in Phoenix and Albuquerque, is         vSpring, a traditional early-stage venture capital firm with over $350
                                                                          Business Administration to administer the SBA 504 Loan             an institutionally funded venture capital partnership with $85      million of committed capital under management, targets information
    Statewide Economic Development Program (SWEDFA)                       Program. SBA 504 provides expanding small businesses with          million under management. It invests in and assists emerging        technology and life sciences companies in the Intermountain West
    The NMFA with the New Mexico Economic Development                     90 percent financing to buy commercial real estate; make            growth companies in the greater Southwest.                          region. Areas of focus include enterprise software, networking and
    Department (NMEDD) are partners in this lending program for           leasehold improvements; buy and install machinery, equipment       For more information: www.valleyventures.com                        communications, security software, Internet, mobile computing,
    private businesses and non-profit companies. SWEDFA offers             and fixtures; and pay soft costs associated with the project.       Contact: Tempe, 480.661.6600 or Jock@ValleyVentures.com             drug discovery, drug delivery, diagnostics, and medical devices.
    a variety of financing strategies to help fund small business          For more information: www.elcdc.com                                                                                                    For more information: www.vspring.com
    including bank participations, direct loans, loan guarantees and      Contact: Albuquerque: 505.843.9232 or 1.888.282.9232                                                                                   Contact: Salt Lake City, 801.942.8999 or paul@vspring.com
    taxable and tax-exempt bonds.




2   NEW MEXICO Financial Assistance Programs by Provider                                                                                                                                                                          NEW MEXICO Financial Assistance Programs by Provider   7
    in the Western United States.                                     Mesa Capital Partners                                                The Loan Fund
    For more information: www.epicvc.com                              Mesa Capital Partners is an early stage private equity firm          The Loan Fund is a private, non-profit organization that provides
    Contact: Salt Lake City, 801.524.8939 or Todd@epicvc.com          focusing on high-potential small business in industries and          loans, capacity building and technical assistance to business owners
                                                                      geographic areas underserved by other capital providers.             and non-profit organizations throughout the state and the entire
    Flywheel Ventures                                                 Mesa targets small businesses across a wide variety of               Navajo Nation. Loans are provided to new and existing businesses
    Flywheel Ventures is a seed and early-state venture capital       manufacturing and services industries, typically outside             for equipment, inventory, building renovations and operating
    firm focused on information technology and physical sciences       sectors commonly considered “high-tech.” Investment                  capital. Loans are provided to non-profits for such needs as bridge
    ventures in the Southwestern/Rockies region. The firm has          candidates typically have annual revenues under $3 million.          financing against awarded private and public contracts, capital
    offices in Santa Fe, Albuquerque and the Silicon Valley.           Equity investment sizes range from $500,000 to $2 million.           improvements and equipment.
    For more information: www.flywheelventures.com                     For more information: www.mesacapitalpartners.us/                    For more information: www.loanfund.org
    Contact: Santa Fe, 800.750.7870 or                                Contact: Santa Fe: 505.428.2990                                      Contact: Albuquerque: 505.243.3196 or 1.866.873.6746
    trevor@flywheelventures.com
                                                                      Murphree Venture Partners (MVP)                                      New Mexico Economic Development
    Fort Washington Capital Partners                                  MVP typically invests in companies with revenue traction in the      Department Community Development
    Fort Washington has over $1.3 billion in private equity           $3 million to $30 million range, but will occasionally invest in a   Revolving Loan Fund (CDRLF)
    commitments and 23 years of experience. The firm has               startup entity. MVP invests in the Sun Belt region with offices       The CDRLF provides loans to New Mexico communities.
    investments with 115+ underlying funds and 40 direct co-          in Houston, Austin, Baton Rouge and Birmingham.                      Loans are available for projects which stimulate job creation and
    investments. The organization includes nearly 40 private equity   For more information: www.murphreeventures.com                       prosperity and may be used for infrastructure improvements,
    and support professionals.                                        Contact: Houston, 713.655.8500 or                                    acquisition of real property, construction, rehabilitation, public
    For more information: www.fortwashington.com                      patrick@murphreeventures.com                                         facilities, and other real property investments.
    Contact: Santa Fe, 505.986.1552 or                                                                                                          •    Maximum loan amount is $250,000 per project.
    john.bessone@fortwashington.com                                   New Mexico Community Capital (NMCC)                                       •    Terms of repayment are negotiable, not to exceed 10
                                                                      NMCC provides investment, management and consulting                            years.
    International Venture Fund (IVF) or                               experience to existing companies seeking equity financing.                 •    Interest rate is set at half the treasury bond equivalent
    Invencor, Inc.                                                    NMCC targets rural and underserved communities throughout                      rate.
    Headquartered in the Silicon Valley, IVF also has an office in     New Mexico. Forty percent of its total fund is invested outside           •    Private property may not benefit directly from this
    Santa Fe. It focuses on investing in companies in Arizona,        Albuquerque, Santa Fe and Los Alamos. Typical investments are                  program.
    Hawaii, New Mexico and Utah, but considers investments in         between $500,000 and $1 million.                                          •    The political subdivision must pledge gross receipts
    other areas. IVF serves the investment gap between the angel      For more information: www.nmccap.org                                           tax to repay the loan.
    community and larger venture funds.                               Contact: Bernalillo: 505.924.2820 or 1.866.222.1552                  Contact Kathy McCormick, 505.247.1750, X3643 or
    For more information: www.invencor.com                                                                                                 kathy.mccormick@state.nm.us.
    Contact: Menlo Park, 650.330.1210 or                              Psilos Group Partners
    richard@invencor.com                                              Psilos has offices in New York, the San Francisco Bay Area            WESST Corp
                                                                      and Santa Fe. The firm is currently investing in the healthcare       WESST Corp is a non-profit, economic development
    ITU Ventures                                                      services, healthcare information technology, medical device,         organization that provides business skills training, product
    ITU finds, develops, and exits technology businesses. Typically    medical instrumentation and specialty pharmaceutical sectors.        marketing, development opportunities, and small loans
    these are companies that have emerged from research               For more information: www.psilos.com                                 (including SBA microloans) to viable start-up or growing New
    universities or institutions.                                     Contact: Santa Fe, 505.995.8500 or dcollins@psilos.com               Mexico businesses owned by women and minorities.
    For more information: www.itu.com                                                                                                      For more information: www.wesst.org
    Contact: Los Angeles, 310.777.5900 or Chad@itu.com                                                                                     Contact: 1.800.GO.WESST




6   NEW MEXICO Financial Assistance Programs by Provider                                                                                                                                                          3
    LOAN GUARANTEE PROGRAMS                                               EQUITY
    USDA Business and Industry Loan                                       Altira Group
    Guarantee Program                                                     Formed in 1996, Altira invests in companies that develop and
    The purpose of this program is to improve, develop, or finance         commercialize energy technologies in the areas of natural
    business, industry, and employment in rural communities. Businesses   resources, clean energy and electric power. Altira does not
    financed under this program must be located in rural areas under       invest in projects for petroleum exploration and production
    40,000 in population and non-urbanized areas. Priority will be        or for power generation.
    given to communities with populations under 25,000. The program       For more information: www.altiragroup.com
    provides businesses with a loan guarantee with up to 80% on loans     Contact: Denver, 303.592.5500 or
    for existing businesses with a maximum loan amount of $5 million.     dmcdermott@altiragroup.com
    This loan program will finance businesses with working capital,
    machinery, equipment, and fixtures and commercial real estate.         Arch Ventures
    USDA administers the program and can provide certified lenders         ARCH provides seed and early stage venture capital for
    to package and process the loan.                                      technology firms, with a special expertise in co-founding and
    For more information: www.rurdev.usda.gov                             building technology firms from startup. ARCH has experience
    Contact: Albuquerque: 505.761.4953                                    in investing in life sciences, physical sciences and information
                                                                          technology companies.
    US Small Business Administration (SBA)                                For more information: www.archventure.com
    The New Mexico SBA office offers opportunities for all                 Contact: Austin, 512.765.5830 or cwbybee@archventure.com
    prospective entrepreneurs to start, build and grow their
    own businesses. The SBA provides technical assistance,                Blue Sage Capital, LP
    loans, procurement opportunities and other assistance to              Blue Sage Capital is a $170 million private equity fund specializing
    entrepreneurs and existing businesses alike. The SBA provides         in growth, recapitalization and buyout financings of middle market
    the following loan guarantee programs:                                companies located primarily in Texas and the Southwest. Most of
         •    7(a)                                                        Blue Sage’s investments are in established, profitable companies
         •    7(a) SBA Express loans up to $350,000 (which may be         with $5 to $100 million in revenues and $2 to $8 million of cash
              used as a line of credit)                                   flow at the time of investment. Blue Sage will consider a variety of
         •    7(a) Community Express loans up to $250,000                 manufacturing, distribution and business service companies.
         •    7(a) Patriot Express loans up to $500,000                   Contact: Albuquerque, 505.843.4267 or
         •    7(a) CAPLines up to $2 million                              beverly.bendicksen@bankofthewest.com
         •    7(a) International Trade loans up to $2 million
         •    7(a) Export Working Capital up to $2 million                CVM
         •    Microloans through nonprofit lending organizations           2575 Park Lane, Suite 200 • Lafayette, CO 80026
              listed in this publication                                  303.440.4055 • Contact: Ed Wetherbee
         •    504 loans through the Certified Development                  EWetherbee@coloradoenergy.com
              Companies licensed through the SBA and also listed
              in this publication                                         Epic Ventures
    For more information: www.sba.gov/nm                                  Epic, founded by Zions Bank, Epic does not focus on a particular
    Contact: New Mexico District Office, Albuquerque:                      technology sector, but looks for companies with the potential
    505.248.8225                                                          for explosive growth. The firm prefers to invest in companies




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